AutoNation, Inc. announced the pricing of $500 million aggregate principal amount of senior unsecured notes due 2030 at 4.750 percent. The notes will be issued at 99.479 percent of the aggregate principal amount, representing a yield to maturity of 4.816 percent. The offering is expected to close on May 22, 2020, subject to customary closing conditions.

The company intends to use the net proceeds from the offering of the notes for general corporate purposes, which may include, in the short term, reducing borrowings under its commercial paper program and/or its revolving credit facility and, in the longer term, repaying its 3.350 percent senior unsecured notes due 2021.

B of A Securities, Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc., Wells Fargo Securities, LLC, Mizuho Securities USA LLC, and U.S. Bancorp Investments, Inc. are acting as joint book-running managers of the debt offering.

The offering is being made solely by means of a prospectus supplement and accompanying prospectus, which has been filed with the Securities and Exchange Commission.

AutoNation Inc. reported first quarter 2020 GAAP net loss from continuing operations of $232 million, or $2.58 per share, compared to net income from continuing operations of $92 million, or $1.02 per share, in the prior year period. First quarter 2020 adjusted net income from continuing operations was $82 million, or $0.91 per share, compared to adjusted net income from continuing operations of $86 million, or $0.95 per share, in the prior year period.

In the first quarter of 2020, the company recorded non-cash goodwill, franchise rights, and other impairment charges totaling $315 million after-tax, or $3.49 per share. These non-cash charges were primarily the result of COVID-19 related impacts to the business and market valuation. First quarter 2019 net income from continuing operations included net gains from store divestitures of $6 million after-tax, or $0.07 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

Same store first quarter 2020 revenue was $4.7 billion, a decrease of 5 percent compared to the same period a year ago. Same store first quarter 2020 gross profit totaled $812 million, a decrease of 3 percent compared to the year-ago period. Same store total variable gross profit was $423 million, a decrease of 5 percent compared to the year-ago period. Same store Customer Financial Services gross profit per vehicle retailed was an all-time record of $2,089, up $179 or 9 percent compared to the year-ago period. Same store Customer Care gross profit was $389 million, a decrease of 1 percent compared to the year-ago period.

AutoNation Inc., announced that Marc Cannon, AutoNation’s executive vice president and chief marketing officer, has been appointed executive vice president and chief customer experience officer, effective April 29.

Cannon has more than 30 years of experience in establishing brands, addressing digital disruption, driving corporate social responsibility, and crisis management. Through his tenure, Cannon has helped develop customer-focused digital experiences and has been involved in strategic planning in technology as it relates to the customer experience for the company.

He will continue to lead brand, advertising, marketing, ecommerce, customer relations, and communications with the added responsibility of technology.

AutoNation Inc. announced that Jim Bender, AutoNation’s executive vice president and chief operating officer, is now the company’s president and COO, effective April 22. Bender has held several key leadership positions within AutoNation for over 20 years. He has implemented successful initiatives, which have resulted in record-breaking results over the last year.

“We are pleased to announce the promotion of Jim Bender. Jim is an outstanding leader, with a wealth of knowledge and a proven track record of success,” said Mike Jackson, chairman and CEO. “Jim continues to drive the day-to-day execution at our 325 plus locations from coast-to-coast. Jim ensures that our associates are delivering a peerless experience for our customers, one at a time.”

AutoNation Adds Exec

November 24, 2019

AutoNation, Inc. announced that Joseph Lower has been appointed executive vice president and chief financial officer, effective Jan. 13. Lower will join AutoNation’s executive committee and report to chief executive officer and president, Cheryl Miller.

Lower will oversee the finance department. He has 30 years of finance and business development experience. Most recently, Lower served as executive vice president and chief financial officer of Office Depot, Inc. Lower holds a Master of Business Administration from the J.L. Kellogg Graduate School of Management at Northwestern University and a Bachelor of Science in Business Administration from the Indiana University School of Business. 

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